RE:RE:Know What You Own
I personally never like pennies with more than 100 to 150 million os that said why do people always assume consolidation when equities have this many shares? What is 100 million divided by 300 million? That is .33 correct. So with that amount of revenue is there a need to consolidate? Will not do a 15 to 1 or a 10 to 1 dont need to. The way things work I have found and it seems to be proving fairly accurate is whatever the revenue is divided by the total outstanding shares that is where stocks trade close to a lot of the time a few exceptions on either ends too high and too low most fall in between. When stocks are EBITDA positive I use a 2 to 4 times multiplier and this too seems to be holding. And when stocks are overall net profit 10 to 30 times revenue typically falling around 25 times. Enbridge has 2.03 billion shares and is sitting low $40 Canadian but they also make tons of revenue. Am I saying this will consolidate no. Am I saying it will not no. That all depends on the offsetting revenue and whether the capacity of this company can earn it at full production capacity. If it can not and to make the value more per share yes it will consolidate but if at full capacity it can successfully fill orders which offset the total outstandings it will not need to. Ecoville is a 100 plus million project that is but one. Now providing the company has several in a year at let's say 300 million that is about a buck a share now depending on gross profit margin and existing long term debt and being able to wipe it out and get first to EBITDA positive the company again may or may not need to consolidate. Mirs has over 600 million shares and traded around .02 .025. I almost bought 5000 shares at .03 went to .89!!!! This was based on finding a covid test possibly leading to vaccine. So if ev are hot huge market where it is impossible to fill all orders and you get in the 100 millions and can fill it you may not need to consolidate...some smaller players Eguana Tech and Enerdynamic Hybrid Technologies bigger ones Exro and then bigger still Telsa and the like. If you want to buy then buy if not I will not bother trying to convince you i think you are smart enough to figure things out or bash companies to get in cheap. What's with all the all caps??? At .19 for 100 million plus i think these are worth rolling the dice on. And by the way i would look at who is backing who. I am convinced the Chinese partners this company is working with is most likely a huge backer and if they are as touted this company should be quite successful. I have given my take as to what is going on here in the past here is what I said...the Chinese company is looking for faces to expand its global reach. It is far easier and cost effective to find people to work with than set up shop and go through all the red tape...establish a country subsidiary that operates in the countries that grow the market who follow the countries rules and regulations including taxation etc. It is like this Western companies going to China and setting up plants there so that they get breaks on the taxes for employing the Chinese workers and given protection from tech being ripped off had you not had that arrangement (what I learnt from my dealings in Natcore) the companies from Canada anyways has a 30 percent allotment where they are exempt from my understanding at being taxed higher as long as no more than 30 percent of their business is derived of foreign considerations be it foreign workers coming to Canada or having 30 percent of your business overseas. So it also goes the similar way. Foreign companies either through jv or wholly owned subsidiaries operate on Canadian soil and enjoy the same taxation benefits as Canadians they are are also likely as with the film industry to get back the GST when filed. This company already has Yoga I forgot his full name as a CEO of a wholly owned subsidiary and he is part of a group who has been spear heading the Ecoville project in Squamish and this company has ties to both the subsidiary as well as the Chinese parent company it is in the news release some time back there are two agreements made and all three working on the project. Now here is what I think this is done to avoid things looking like a monopoly so you have a parent company a wholly owned subsidiary which may be considered arms length and this company. In any case, I am sure this is all about legal for a lack of a better way of saying loopholes where this big Chinese power house again if what is said is true is looking to expand its reach so they enjoy the same taxation as those of the companies that operate on their home soil avoid all the red tape have trustworthy people to run the affairs cut costs in time and distribution by having people with space and the ability to hold and move product as well as possible side step tariffs and things that may get placed on Chinese companies to level the playing field as well as to prevent "anti dumping" if companies already have either partners or legally wholly owned subsidiaries they will not face these things. So I have a feeling that this company has a strong backing and is the face to strategic and legal loopholes. Whether this company will be acquired remains to be seen but as I said in the past it may be better to have it as a partner vs a wholly owned subsidiary to avoid anti competition scenarios from arising. I had said all this in the past as that is what I strongly believe is happening so really the power of this company has tons to do with the Chinese partner and if again what we are told they are hungry to expand their global reach and they are of excellent quality this company is in solid grounds as in fact huge amounts of people including most likely Tesla are looking for Chinese partnership this company already seemingly has a fairly dominant player in all of this. So .19 either you and anyone else want to roll the dice again then do so who needs to convince you or anyone else all the facts are here for people to read while doing their due diligence. I held shares here dumped them and bought back again higher because the company is showing they can get product out before I didnt believe they would at least not this fast or to what they are claiming. That said I posted not long ago it isnt about this vs Tesla and shouldn't ever be. But it should be about this company having the opportunity to fill a huge need. No way Tesla or a handful of companies will fill it all. My opinions are not to convince you or anyone else as to what I or they should do just opinions as to how I view things on a take or leave basis. As far as price I think it is quite fair and will look cheap when products start to sell as far as risk reward less risk more upside right now...but just a lay person's opinion and I can always be wrong. Regardless I have obviously decided to roll the dice again and half a cent down. I believe the base is no less than.15 and the range up to .20. I don't see this moving all that much beyond until we hear about product being sold but I can be wrong on that. As far as floor despite my saying range of .15 it looks to be around .17 push back I put .15 as a point I dont believe it will break below but can potentially get there not saying it will though. Nevertheless I can be wrong on this as well. Do your own DD and what I have given take it for what it is worth coming from an extremely lay person just my opinion and something as I said not otherwise saying to be to any extent as offered by certified experts. I like what I see for all the reasons I have given. That said i also will move accordingly as to however i feel i need to manage my shares. So far I just sit and wait :-)